Record net connections of 31,000 for a total on the service of 333,000

Record total revenue of $17.6 million, a year-over-year increase of 57%

Record license and transaction fee revenue of $11.9 million, a
year-over-year increase of 26%

Free cashflow of $2.7 million*

*(defined as cash flow from operations less cash used for the purchase
of property for the JumpStart rental program.)

Fourth Quarter Financial Results:

Three months ended

June 30,

2015

2014

$

Change

% Change

($ in thousands except-per share data)

Revenues:

License and transaction fees

$

11,938

$

9,460

$

2,478

26

%

Equipment sales

$

5,708

$

1,747

$

3,961

227

%

Total revenues

$

17,646

$

11,207

$

6,439

57

%

Operating income (loss)

$

93

$

(568

)

$

661

116

%

Adjusted EBITDA

$

1,701

$

1,266

$

435

34

%

Net income (loss)

$

69

$

(39

)

$

108

277

%

Non-GAAP net income (loss)

$

58

$

(619

)

$

677

109

%

Net earnings (loss) per common share - diluted

$

(0.01

)

$

-

$

(0.01

)

-100

%

Non-GAAP net earnings (loss) per common share - diluted

$

-

$

(0.02

)

$

0.02

100

%

"Our leadership position in mobile and NFC payments, combined with our
extensive experience with the self-service retail market, is fueling our
growth and propels us toward achieving our long-term goals," said
Stephen P. Herbert, USA Technologies' chairman and chief executive
officer. "With Google's launch of Android Pay, and our collaboration
with them, it is another validation of the broader market acceptance of
the mobile payments technology we have championed for more than 10
years. With a record number of gross connections this quarter coupled
with an increase in equipment sales, we ended the quarter with a
year-over-year revenue increase of 57%. We continue to strengthen our
balance sheet with the success of the QuickStart program which has
increased our cash position significantly and are focused on expanding
our presence with our current customers and developing a growing list of
new customers."

Fourth Quarter Connection and Transaction Data:

Three Months Ended

June 30

2015

2014

% Change

Gross New Connections ('000s)

34

25

36%

% from Existing Customer Base

89%

84%

5%

Net New Connections ('000s)

31

22

41%

Total Connections ('000s)

333

266

25%

New Customers Added

675

650

4%

Total Customers

9,600

7,300

32%

Total Number of Transactions (millions)

62

47

32%

Transaction Volume ($millions)

$112.8

$82.9

36%

Fiscal 2015 Financial Highlights:

Record net connections of 67,000 for the year

Record total revenue of $58.1 million, a year-over-year increase of 37%

Year end cash position of $11.4 million

Fiscal 2015 Financial Results:

Year ended

June 30,

2015

2014

$

Change

% Change

($ in thousands except-per share data)

Revenues:

License and transaction fees

$

43,633

$

35,638

$

7,995

22

%

Equipment sales

$

14,444

$

6,707

$

7,737

115

%

Total revenues

$

58,077

$

42,345

$

15,732

37

%

Operating income

$

210

$

436

$

(226

)

-52

%

Adjusted EBITDA

$

6,709

$

6,451

$

258

4

%

Net income (loss)

$

(819

)

$

27,531

$

(28,350

)

-103

%

Non-GAAP net income (loss)

$

(20

)

$

189

$

(209

)

-111

%

Net earnings (loss) per common share - diluted

$

(0.04

)

$

0.78

$

(0.82

)

-105

%

Non-GAAP net loss per common share - diluted

$

(0.02

)

$

(0.01

)

$

(0.01

)

-100

%

Fiscal 2016 Outlook

For full year fiscal 2016, management expects to add more than 75,000
net new connections, bringing total connections on the service to over
400,000 and expects total revenue to be between $69 million and $71
million. Additionally, QuickStart will remain a popular program for
customers, and management expects it to drive positive free cash flows
in 2016.

A live webcast of the conference call will be available at http://investor.usatech.com/events.cfm.
Please access the website 15 minutes prior to the start of the call to
download and install any necessary audio software.

A telephone replay of the conference call will be available from 10:00
p.m. Eastern Time on September 10, 2015 until 11:59 p.m. Eastern Time on
September 13, 2015 and may be accessed by calling (855) 859-2056
(domestic dial-in) or (404) 537-3406 (international dial-in) and
reference conference ID # 25774520. An archived replay of the conference
call will also be available in the investor relations section of the
company's website.

About USA Technologies

USA Technologies is a leader of wireless, cashless payment and M2M
telemetry flagship service platform, a PCI-compliant, end-to-end suite
of cashless payment and telemetry services specially tailored to fit the
needs of small ticket, self-service retailing industries. USA
Technologies also provides a broad line of cashless acceptance
technologies including its NFC- ready ePortG-series, ePort MobileTM
for customers on the go, and QuickConnect, an API Web service for
developers. USA Technologies has been granted 87 patents; and has
agreements with Verizon, Visa, Chase Paymentech and customers such as
Compass, AMI Entertainment and others. Visit the website at www.usatech.com.

Forward-looking Statements:

"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: All statements other than statements of historical fact
included in this release, including without limitation the business
strategy and the plans and objectives of USAT's management for future
operations, are forward-looking statements. When used in this release,
words such as "anticipate", "believe", "estimate", "expect", "intend",
and similar expressions, as they relate to USAT or its management,
identify forward looking statements. Such forward-looking statements are
based on the beliefs of USAT's management, as well as assumptions made
by and information currently available to USAT's management. Actual
results could differ materially from those contemplated by the
forward-looking statements as a result of certain factors, including but
not limited to, the ability of management to accurately predict or
forecast future earnings or taxable income of USAT; the incurrence by us
of any unanticipated or unusual non-operational expenses which would
require us to divert our cash resources from achieving our business
plan; the ability of USAT to retain key customers from whom a
significant portion of its revenues is derived; the ability of USAT to
compete with its competitors to obtain market share; whether USAT's
customers continue to utilize USAT's transaction processing and related
services, as our customer agreements are generally cancelable by the
customer on thirty to sixty days' notice; the ability of USAT to raise
funds in the future through the sales of securities or debt financings
in order to sustain its operations if an unexpected or unusual
non-operational event would occur; the ability of USAT to use available
data to predict future market conditions, consumer behavior and any
level of cashless usage; the ability to prevent a security breach of our
systems or services or third party services or systems utilized by us;
whether any patents issued to USAT will provide USAT with any
competitive advantages or adequate protection for its products, or would
be challenged, invalidated or circumvented by others; the ability of
USAT to operate without infringing the proprietary rights of others;
whether USAT would be able to sell sufficient ePort hardware to third
party leasing companies as part of the QuickStart program in order to
significantly increase cash flows from operations; and whether USAT's
existing or anticipated customers purchase, rent or utilize ePort
devices or our other products or services in the future at levels
currently anticipated by USAT. Readers are cautioned not to place undue
reliance on these forward-looking statements. Any forward-looking
statement made by us in this release speaks only as of the date of this
release. Unless required by law, USAT does not undertake to release
publicly any revisions to these forward-looking statements to reflect
future events or circumstances or to reflect the occurrence of
unanticipated events.

USA Technologies, Inc.

Consolidated Statement of Operations

Three months ended

Year ended

June 30,

June 30,

2015

2014

2015

2014

Revenues:

License and transaction fees

$

11,937,898

$

9,460,303

$

43,633,462

$

35,638,121

Equipment sales

5,708,297

1,747,157

14,444,012

6,706,843

Total revenues

17,646,195

11,207,460

58,077,474

42,344,964

Cost of services

7,863,105

6,327,432

29,429,385

23,018,001

Cost of equipment

4,975,089

1,217,884

11,825,455

4,254,127

Gross profit

4,808,001

3,662,144

16,822,634

15,072,836

Operating expenses:

Selling, general and administrative

4,558,816

4,067,804

16,001,255

14,036,016

Depreciation and amortization

155,697

162,151

611,682

600,488

Total operating expenses

4,714,513

4,229,955

16,612,937

14,636,504

Operating income (loss)

93,488

(567,811

)

209,697

436,332

Other income (expense):

Interest income

42,204

8,995

82,695

30,337

Other income

52,178

-

52,178

-

Interest expense

(92,078

)

(74,529

)

(301,767

)

(256,844

)

Change in fair value of warrant liabilities

262,643

53,125

(393,144

)

65,429

Total other income (expense), net

264,947

(12,409

)

(560,038

)

(161,078

)

Income (loss) before provision for income taxes

358,435

(580,220

)

(350,341

)

275,254

Benefit (provision) for income taxes

(289,436

)

541,501

(469,141

)

27,255,398

Net income (loss)

68,999

(38,719

)

(819,482

)

27,530,652

Cumulative preferred dividends

-

-

(664,452

)

(664,452

)

Net income (loss) applicable to common shares

$

68,999

$

(38,719

)

$

(1,483,934

)

$

26,866,200

Net earnings (loss) per common share - basic

$

-

$

-

$

(0.04

)

$

0.78

Basic weighted average number of common shares outstanding

35,716,603

35,517,099

35,663,386

34,613,497

Net earnings (loss) per common share - diluted

$

(0.01

)

$

-

$

(0.04

)

$

0.78

Diluted weighted average number of common shares outstanding

36,310,919

35,517,099

35,663,386

34,613,497

USA Technologies, Inc.

Consolidated Balance Sheets

June 30,

2015

2014

Assets

Current assets:

Cash and cash equivalents

$

11,373,973

$

9,072,320

Accounts receivable, less allowance for uncollectible accounts of
$494,000 and $63,000, respectively

Adjustments to reconcile net income (loss) to net cash provided by
operating activities:

Charges incurred in connection with the vesting and issuance of
common stock for employee and director compensation

174,598

280,161

715,762

529,041

(Gain) loss on disposal of property and equipment

(3,926

)

(2,808

)

(17,357

)

4,245

Non-cash interest and amortization of debt discount

-

-

-

2,095

Bad debt expense

47,184

67,403

649,528

134,176

Depreciation

1,380,983

1,553,875

5,731,356

5,463,985

Amortization

-

-

-

21,953

Change in fair value of warrant liabilities

(262,643

)

(53,125

)

393,144

(65,429

)

Deferred income taxes, net

211,086

(587,369

)

395,038

(27,301,266

)

Gain on sale of finance receivables

(52,178

)

-

(52,178

)

-

Recognition of deferred gain from sale-leaseback transactions

(215,097

)

(9,522

)

(833,619

)

(9,522

)

Changes in operating assets and liabilities:

Accounts receivable

(1,260,064

)

(736,633

)

(2,517,493

)

(157,071

)

Finance receivables

(331,606

)

(39,938

)

(4,113,898

)

52,531

Inventory

(638,693

)

31,689

(1,930,857

)

370,104

Prepaid expenses and other current assets

(96,924

)

(128,280

)

(304,229

)

(190,783

)

Accounts payable

3,528,851

1,341,699

918,761

412,664

Accrued expenses

93,273

567,988

54,717

267,004

Income taxes payable

37,312

21,021

33,065

21,021

Net cash provided by (used in) operating activities

2,681,155

2,267,442

(1,697,742

)

7,085,400

INVESTING ACTIVITIES:

Purchase of property and equipment

(6,080

)

(50,760

)

(60,309

)

(111,121

)

Purchase of property for rental program

-

(3,671,812

)

(1,641,993

)

(10,883,473

)

Proceeds from sale of rental equipment under sale-leaseback
transaction

-

2,995,095

4,993,879

2,995,095

Proceeds from sale of property and equipment

7,676

51,672

61,914

82,047

Net cash provided by (used in) investing activities

1,596

(675,805

)

3,353,491

(7,917,452

)

FINANCING ACTIVITIES:

Net proceeds from the issuance (retirement) of common stock and
exercise of common stock warrants

-

(13,913

)

(61,987

)

2,272,936

Excess tax benefits from share-based compensation

9,749

24,847

9,749

24,847

Proceeds from (repayment of) line of credit

-

1,000,000

(1,000,000

)

2,000,000

Proceeds from long-term debt

304,007

-

2,056,724

-

Repayment of long-term debt

(97,240

)

(107,368

)

(358,582

)

(374,411

)

Net cash provided by financing activities

216,516

903,566

645,904

3,923,372

Net increase (decrease) in cash and cash equivalents

2,899,267

2,495,203

2,301,653

3,091,320

Cash and cash equivalents at beginning of period

8,474,706

6,577,117

9,072,320

5,981,000

Cash and cash equivalents at end of period

$

11,373,973

$

9,072,320

$

11,373,973

$

9,072,320

Supplemental disclosures of cash flow information:

Cash paid for interest

$

99,474

$

70,617

$

301,767

$

259,820

Depreciation expense allocated to cost of services

$

1,252,485

$

1,386,803

$

5,119,674

$

4,880,529

Reclass of rental program property to inventory, net

$

(718,816

)

$

6,463

$

674,280

$

33,266

Prepaid items financed with debt

$

-

$

-

$

103,125

$

101,850

Equipment and software acquired under capital lease

$

-

$

107,670

$

107,903

$

325,431

Disposal of property and equipment

$

447,338

$

475,781

$

842,204

$

709,638

Disposal of property and equipment under sale-leaseback transactions

$

-

$

1,918,920

$

3,873,275

$

1,918,920

Discussion of Non-GAAP Financial Measures:

This press release contains certain non-GAAP financial measures.
Generally, a non-GAAP financial measure is a numerical measure of a
company's performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or included
in the most directly comparable measure calculated and presented in
accordance with GAAP. Reconciliations between non-GAAP and GAAP measures
are set forth below.

The following non-GAAP financial measures are discussed herein: adjusted
EBITDA, non-GAAP net income (loss) and non-GAAP net earnings (loss) per
common share - basic and diluted. The presentation of these additional
financial measures are not intended to be considered in isolation from,
or superior to, or as a substitute for the financial measures prepared
and presented in accordance with GAAP (Generally Accepted Accounting
Principles), including the net income or net loss of USAT or net cash
used in operating activities. Management recognizes that non-GAAP
financial measures have limitations in that they do not reflect all of
the items associated with USAT's net income or net loss as determined in
accordance with GAAP. These non-GAAP financial measures are not required
by or defined under GAAP and may be materially different from the
non-GAAP financial measures used by other companies. USAT has provided
below the reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.

As used herein, non-GAAP net income represents GAAP net income (loss)
excluding costs or benefits relating to any adjustment for fair value of
warrant liabilities and non-cash portions of the Company's income tax
benefit (provision).

Non-GAAP net earnings (loss) per common share - diluted is calculated by
dividing non-GAAP net income (loss) applicable to common shares by the
number of diluted weighted average shares outstanding.

Adjusted EBITDA represents net income (loss) before interest income,
interest expense, income taxes, depreciation, amortization, and change
in fair value of warrant liabilities and stock-based compensation
expense. We have excluded the non-operating change in fair value of
warrant liabilities, because it represents a non-cash gain or (charge)
that is not related to USAT's operations. We have excluded the non-cash
expense stock-based compensation as it does not reflect the cash-based
operations of USAT. Adjusted EBITDA is presented because we believe it
is useful to investors as a measure of comparative operating performance
and liquidity, and because it is less susceptible to variances in actual
performance resulting from depreciation and amortization and non-cash
charges for changes in fair value of warrant liabilities and stock-based
compensation expense.

Management believes that non-GAAP net income (loss) and non-GAAP net
earnings (loss) per common share - diluted are important measures of
USAT's business. Management uses the aforementioned non-GAAP measures to
monitor and evaluate ongoing operating results and trends and to gain an
understanding of our comparative operating performance. We believe that
these non-GAAP financial measures serve as useful metrics for our
management and investors because they enable a better understanding of
the long-term performance of our core business and facilitate
comparisons of our operating results over multiple periods, and when
taken together with the corresponding GAAP financial measures and our
reconciliations, enhance investors' overall understanding of our current
and future financial performance.

Non GAAP Reconciliation

Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(loss) and Earnings (loss) Per Common Share to Non-GAAP Earnings
(loss) Per Common Share

Three months ended

Three months ended

Three months ended

Three months ended

Three months ended

June 30,

March 31,

December 31,

September 30,

June 30,

2015

2015

2014

2014

2014

Net income (loss)

$

68,999

$

(566,610

)

$

(260,915

)

$

(60,956

)

$

(38,719

)

Non-GAAP adjustments:

Non-cash portion of income tax provision/benefit

252,124

121,046

402,358

(369,452

)

(527,001

)

Fair value of warrant adjustment

(262,643

)

1,101,241

(135,402

)

(310,052

)

(53,125

)

Non-GAAP net income (loss)

$

58,480

$

655,677

$

6,041

$

(740,460

)

$

(618,845

)

Net income (loss)

$

68,999

$

(566,610

)

$

(260,915

)

$

(60,956

)

$

(38,719

)

Cumulative preferred dividends

$

-

$

(332,226

)

$

-

$

(332,226

)

$

-

Net income (loss) applicable to common shares

$

68,999

$

(898,836

)

$

(260,915

)

$

(393,182

)

$

(38,719

)

Non-GAAP net income (loss)

$

58,480

$

655,677

$

6,041

$

(740,460

)

$

(618,845

)

Cumulative preferred dividends

-

(332,226

)

-

(332,226

)

-

Non-GAAP net income (loss) applicable to common shares

$

58,480

$

323,451

$

6,041

$

(1,072,686

)

$

(618,845

)

Net earnings (loss) per common share - basic

$

-

$

(0.03

)

$

(0.01

)

$

(0.01

)

$

-

Non-GAAP net earnings (loss) per common share - basic

$

-

$

0.01

$

-

$

(0.03

)

$

(0.02

)

Basic weighted average number of common shares outstanding

35,716,603

35,687,650

35,657,519

35,586,455

35,517,099

Net loss per common share - diluted

$

(0.01

)

$

(0.03

)

$

(0.01

)

$

(0.01

)

$

-

Non-GAAP net earnings (loss) per common share - diluted

$

-

$

0.01

$

-

$

(0.03

)

$

(0.02

)

Diluted weighted average number of common shares outstanding

36,310,919

35,687,650

35,657,519

35,586,455

35,517,099

Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(Loss) and Income (Loss) Per Common Share to Non-GAAP Loss Per
Common Share

Year ended June 30,

2015

2014

Net income (loss)

$

(819,482

)

$

27,530,652

Non-GAAP adjustments:

Non-cash portion of income tax provision/benefit

406,076

(27,276,419

)

Fair value of warrant adjustment

393,144

(65,429

)

Non-GAAP net income (loss)

$

(20,262

)

$

188,804

Net income (loss)

$

(819,482

)

$

27,530,652

Cumulative preferred dividends

(664,452

)

(664,452

)

Net income (loss) applicable to common shares

$

(1,483,934

)

$

26,866,200

Non-GAAP net income (loss)

$

(20,262

)

$

188,804

Cumulative preferred dividends

(664,452

)

(664,452

)

Non-GAAP net loss applicable to common shares

$

(684,714

)

$

(475,648

)

Net earnings (loss) per common share - basic and diluted

$

(0.04

)

$

0.78

Non-GAAP net loss per common share - basic and diluted

$

(0.02

)

$

(0.01

)

Weighted average number of common shares outstanding - basic and
diluted